Gold prices declined on Wednesday despite the dollar weakening against most major currencies. Investors took a pause and booked profits following a series of record highs.
Federal Reserve Chair Jerome Powell, speaking at a symposium earlier this week, noted that inflation remained firm during the first quarter, casting doubts on the likelihood of interest rate cuts in 2024.
Powell emphasized that recent inflation data didn't provide sufficient confidence to the Fed that inflation was moving toward the target, suggesting it might take longer than anticipated.
He highlighted strong economic growth and labor market momentum in recent data but noted limited progress in bringing inflation closer to the 2% target.
In other news, the International Monetary Fund raised its global growth forecast by 0.1% to 3.2%, projecting a 2.7% growth rate for the US economy this year. This is an increase from the previous forecast of 0.6%.
Meanwhile, the dollar index declined by 0.3% to 105.8 as of 18:14 GMT, reaching a session high of 106.4 and a low of 105.8.
Gold spot prices dropped by 0.6% to $2393 per ounce as of 18:15 GMT, decreasing by $14.60 after hitting an all-time high above $2400.
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